Fabricato, Coltejer Report Improved Financial Results in 2015

Medellin-based textile manufacturer Fabricato revealed February 24 in a filing with the Superintendencia Financiera de Colombia that its fourth quarter (4Q) net income rose to COP4.9 billion (US$1.5 million), up from a net loss of COP11.6 billion (-US$3.6 million) in 4Q 2014.

Earnings before interest, taxes, depreciation and amortization (EBITDA) for 4Q 2015 rose to COP3.5 billion (US$1 million), up from a net loss of COP5.9 billion (-US$1.8 million) in 4Q 2014, according to the filing.

Fabricato credited the big improvement to a widening of its productive capacity, re-establishment of commercial relations with its lenders and credit approvals for its 2016 investment plan.

For full-year 2015, Fabricato reported that its net income rose to COP33.9 billion (US$10.6 million), up from a net loss of COP32.7 billion (-US$10 million) in 2014.  EBITDA for full-year 2015 likewise rose to COP23.8 billion (US$7.4 million), up from a net loss of COP4 billion (-US$1.2 million) in 2014.

Fabricato credited the full-year profit improvement largely to an accelerating decline in textile imports and a simultaneous rise in demand for Colombian textiles, mainly the result of U.S. dollar appreciation versus the Colombian peso. 

The company also credited the profit improvement to its recent restructuring program (launched in 2013) as well as greater production efficiencies. Part of the restructuring involved a COP70 billion (US$21.9 million) benefit from the sale of a 30% interest in the Pantex real estate development project in Antioquia — which will start producing net income for the partners in 2017 — as well as a COP15.9 billion (US$4.9 million) hike in its 2015 textile profits.

The company had suffered net losses for four straight years prior to reporting its return to profitability in 2015.

Coltejer Profits Rise

Meanwhile, Medellin-based textile giant Coltejer likewise announced February 18 that its net income improved in 2015, rising to COP7.58 billion (US$2.37 million), with all profits to be used for debt repayments in prior, unprofitable years.

The company also announced that it sold another 471,000 of its shares to Grupo MCM de Colombia, the second-biggest shareholder (behind Mexico-based Kaltex, which through two divisions holds more than 60% of total Coltejer shares).